Business

Stocks rise after Federal Reserve announcement

The stock market is getting a lift Thursday thanks to the Federal Reserve's latest attempt to spur the economy.

The Dow Jones industrial average was up more than 150 points by late morning Pacific time, with most of the gain coming immediately after the central bank unveiled its newest stimulus effort.

Treasury bonds, however, were thrashing about as bond traders frentically tried to assess what the plan means for them.

The yield on the 10-year Treasury note was up slightly, to 1.78% from 1.76% on Wednesday.

However, yields surged immediately after the Fed announcement -- reaching as high as 1.83% -- apparently out of disappointment that the Fed said it would focus its bond-buying efforts on mortgage bonds rather than Treasury securities.

The Dow was up 156.46 points, or 1.2%, to 13,489.81. The Standard & Poor's 500 index advanced 12.78 points, or 0.9%, to 1,449.34.

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Follow Walter Hamilton on Twitter @LATwalter

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